Markets have bottomed out: Dr Tirthankar Patnaik

In a chat with ET Now, Dr Tirthankar Patnaik, Director, Strategist-Institutional Research, Religare Capital Markets Limited shares his views on the market.

ET Now: Nifty is up a good solid 250 points from the recent lows. Have we bottomed out in the short-term?

Tirthankar Patnaik: Yes, we have clearly bottomed. We have seen the markets move up. If you look at one year period, we are still in the 5500 levels to about 6100-6200 levels range. From a long term perspective, the market will break out of that range. The short covering that we have seen over the last couple of weeks is one repeated manifestation of the condition over the last many months. The market was oversold at 5600 odd levels and the market has basically moved up. We will neither be buyers in that rally nor will change our sector stance.

ET Now: MSCI has decided to slash their weightage on Lupin. What is your call on the stock?

Dr Tirthankar Patnaik: One will have to see the company specific factors because performance is hardly an issue. The stock is at an all time high. We will have to see why Lupin's weightage is being reduced.